BRIC Markets: The Burgeoning Middle Classes

Published by: Datamonitor

Published: Apr. 13, 2007 - 20 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

TABLE OF CONTENTS

Datamonitor View

CATALYST

SUMMARY

METHODOLOGY

TABLE OF CONTENTS

Analysis

The potential for a burgeoning middle class varies by BRIC market Brazil's open and relatively stable democracy bodes well for the future Brazil's economy is improving strongly Disparity of income has long been the reality of Modern BrazilBrazil's income distribution is uneven but is fast improving Rising home ownership is a key opportunity in Brazil Increasing scarcity of resources should be beneficial to Brazil's commodity-based wealthThe once precarious state of the middle class in Russia is now stabilizing Income equality in Russia is improving quicker than in any other BRIC marketThe growing wealth of Russia is driving the broadening of the middle class Growth in the housing market signals opportunities in household-related productsRussia's improving political and economic stability favors the continuance of a middle class Russia's economy and society are opening and transcending its borders Of all BRIC markets, India's knowledge economy has the most stable middle class potential India's investment in its service industries can underpin the growth of its middle class India's cultural diversity can be a positive factor in establishing foreign brands in the 'consumerscape' India's income inequality is now less severe than in many European countries India's low GDP suggests a broad but shallow middle class The housing market in Indian cities parallels the patterns seen in the West China's middle class is strongest in urban areas Rising income inequality in China is indicative of the rising urban middle class China's manufacturing success is fuelling the urban spending boom Consumer aspirations for foreign brands are growing China's entrepreneurial culture is a dual-edged sword for brands China's central planning can help economic growth with a strong uniting vision Action points Prepare for increased conspicuous consumption as the middle class asserts its rising affluence Intellectual property must be protected Prepare for the future with higher premium goods and services Take existing mature brands into new BRIC markets to milk as cash cows

ANALYSIS

The potential for a burgeoning middle class varies by BRIC market Brazil's open and relatively stable democracy bodes well for the future Brazil's economy is improving strongly Disparity of income has long been the reality of Modern Brazil Income inequality is reducing, creating greater potential for a sizeable middle class Brazil's income distribution is uneven but is fast improving Rising home ownership is a key opportunity in Brazil Increasing scarcity of resources should be beneficial to Brazil's commodity-based wealth Environmental concerns may slow Brazil's economic and infrastructural development The once precarious state of the middle class in Russia is now stabilizing Income equality in Russia is improving quicker than in any other BRIC market The growing wealth of Russia is driving the broadening of the middle class Growth in the housing market signals opportunities in household-related products Russia's improving political and economic stability favors the continuance of a middle class Russia's economy and society are opening and transcending its borders Of all BRIC markets, India's knowledge economy has the most stable middle class potential India's investment in its service industries can underpin the growth of its middle class India's cultural diversity can be a positive factor in establishing foreign brands in the 'consumerscape' India's income inequality is now less severe than in many European countries India's low GDP suggests a broad but shallow middle class The housing market in Indian cities parallels the patterns seen in the West China's middle class is strongest in urban areas Rising income inequality in China is indicative of the rising urban middle class China's manufacturing success is fuelling the urban spending boom Consumer aspirations for foreign brands are growing China's entrepreneurial culture is a dual-edged sword for brands China's central planning can help economic growth with a strong uniting vision Action points Prepare for increased conspicuous consumption as the middle class asserts its rising affluence Intellectual property must be protected Prepare for the future with higher premium goods and services Take existing mature brands into new BRIC markets to milk as cash cows

List of Tables

Table 1: GDP per capita (US$), 2000-2010, Brazil

Table 2: Gini co-efficient, 2000-2010, Brazil

Table 3: Income quintile distribution (US$), 2005, Brazil

Table 4: Home occupancy ownership (%) and average home price (US$), 2000-2010, Brazil

Table 5: Gini co-efficient, 2000-2010, Russia

Table 6: Income quintile distribution (US$), 2005, Russia

Table 7: GDP per capita (US$ 1995), 2000-2010, Russia

Table 8: Home occupancy ownership (%) and average home price (US$), 2000-2010, Russia

Table 9: Gini co-efficient, 2000-2010, India

Table 10: Income quintile distribution (US$), 2005, India

Table 11: GDP per capita (US$), 2000-2010, India

Table 12: Home occupancy ownership (%) and average home price (US$), 2000-2010, India

Table 13: Gini co-efficient, 2000-2010, China

Table 14: Income quintile distribution (US$), 2005, China

Table 15: GDP per capita (US$), 2000-2010, China

Table 16: Home occupancy ownership (%) and average home price (US$), 2000-2010, China

List of Figures

Figure 1: Brazil's economy is based on services and commodity resources

Figure 2: The affluence and needs of the middle class inevitably evolves

Abstract

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